Marketing Ch. 9

  1. Price
    Price is the amount of money charged for a product or service.
  2. Fixed Costs
    Costs that do not vary with production or sales level.
  3. Variable Costs
    Costs that vary directly with the level of production.
  4. Total Costs
  5. Demand Curve
    A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged.
  6. Price Elasticity
    Adding a standard markup to the cost of the product.
  7. Cost-Plus Pricing
  8. Break-Even Pricing
  9. Value-Based Pricing
    Uses buyers’ perceptions of value, not the seller’s cost, as the key to pricing.
  10. Market-Skimming Pricing
    Set a high price for a new product to “skim” revenues layer by layer from the market.
  11. Market-Penetration Pricing
    Set a low initial price in order to “penetrate” the market quickly and deeply.
  12. Discount
  13. Allowance
  14. Segmented Pricing
    Selling a product or service at two or more prices, where the difference in prices is not based on differences in costs.
  15. Promotional Pricing
    Temporarily pricing products below list price and sometimes even below cost to create buying excitement and urgency.
Card Set
Marketing Ch. 9